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Under what conditions will a firm exit a market? Explain. Find an article that addresses the...

Under what conditions will a firm exit a market? Explain. Find an article that addresses the announcement that a firm is leaving a market. Explain the conditions for the departure within the context of the article. please do not copy an answer from chegg already, make this original and make sure to have a reference. thank you and I will rate well!

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The necessary condition is that if the firms AVERAGE REVENUE = AVERAGE VARIABLE COST then the firm should shut down its operations and not produce further. It should exit from the market. This is because it is necessary for the firm to cover up its variable cost so that it can carry its operations , if the firm is not bale to cover its variable costs then it will not be able to survive and will turn down to be sick. Hence it should shut down at this price.

For example, Videocon exit the health insurance market and sells the stake to JINDAL GROUP. Videocon which is an electronics company firstly entered in to the health insurance business for the first time but could not survive in the market due to large no. of competitors and hence had to exit and sell the stake to the JINDAL group.

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